By OGJ editors
HOUSTON, Sept. 24 -- The US Department of Energy agreed to short-term loans of crude oil from the Strategic Petroleum Reserve (SPR) to help relieve hurricane-related shortages for two companies in the Gulf of Mexico region.
DOE officials Friday confirmed the approval of a 1.4 million bbl loan to Shell Trading US Co. because of oil supply disruptions caused by Hurricane Ivan (OGJ, Sept. 2, 2004, p. 5). Oil was expected to begin flowing Saturday for use at Shell refineries.
In addition, the DOE agreed to lend 300,000 bbl to Placid Refining Co., Port Allen, La. The oil is to be returned to the SPR once supply conditions return to normal.
Similar loans were made in October 2002 after Hurricane Lili (OGJ Online, Oct. 22, 2002). The SPR was designed to protect American consumers against supply disruptions, including natural disasters, DOE officials said.
